Stock Price Movement and Market Context
On 5 December 2025, Hemang Resources' share price touched Rs.17.6, marking its lowest level in the past year. This price point stands in stark contrast to its 52-week high of Rs.34.57, indicating a significant contraction of nearly 49% from its peak. The stock underperformed its sector by 0.46% on the day, with a day change of -1.05%. Furthermore, the share price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
Meanwhile, the broader market exhibited resilience. The Sensex, after an initial negative opening of 139.84 points, rebounded sharply by 478.18 points to close at 85,603.66, just 0.65% shy of its 52-week high of 86,159.02. The index is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, reflecting a bullish trend. Mega-cap stocks led this recovery, contrasting with Hemang Resources’ subdued performance.
Financial Performance Overview
Hemang Resources’ financial metrics over the past year reveal a challenging environment. The company’s one-year stock return stands at -35.64%, while the Sensex recorded a positive return of 4.69% over the same period. This divergence highlights the stock’s relative underperformance against the benchmark.
Profitability indicators have shown contraction. The company’s profit after tax (PAT) for the nine months ended September 2025 was Rs.1.09 crore, reflecting a decline of 90.79% compared to the previous period. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) have been negative, contributing to a high debt-to-EBITDA ratio of -1.00 times, which points to limited capacity to service debt obligations effectively.
Operational efficiency metrics also suggest pressures. The debtors turnover ratio for the half-year period was recorded at 0.33 times, indicating slower collection cycles and potential liquidity constraints. Over the past year, profits have fallen by 87.2%, underscoring the financial strain faced by the company.
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Long-Term Performance and Market Position
Hemang Resources has consistently underperformed the BSE500 index over the last three annual periods, reflecting persistent challenges in maintaining competitive positioning within the Trading & Distributors sector. The stock’s returns over the past year have been negative, and this trend has extended over multiple years, indicating structural issues impacting growth and profitability.
The company’s market capitalisation grade is relatively low, and its financial fundamentals suggest a weak long-term strength. The majority shareholding remains with promoters, which may influence strategic decisions and capital allocation going forward.
Valuation and Risk Considerations
From a valuation standpoint, Hemang Resources is trading at levels that suggest elevated risk compared to its historical averages. Negative EBITDA and a high debt-to-EBITDA ratio highlight financial stress, while the low debtors turnover ratio points to potential challenges in working capital management. These factors contribute to the stock’s current valuation and its position near the 52-week low.
Investors observing the stock will note that the company’s financial results for the recent periods have been flat or contracting, with limited signs of recovery in key profitability metrics. The stock’s performance relative to the broader market and sector peers has been subdued, reflecting the challenges faced by the company in the current market environment.
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Summary of Key Metrics
To summarise, Hemang Resources’ stock price at Rs.17.6 represents a significant decline from its 52-week high of Rs.34.57. The company’s financial indicators reveal a contraction in profitability, negative EBITDA, and a high debt burden relative to earnings. The stock’s underperformance against the Sensex and BSE500 indices over multiple years further illustrates the challenges faced by the company.
While the broader market and sector indices have shown strength, Hemang Resources remains below key moving averages and continues to trade near its lowest levels in the past year. These factors collectively provide a comprehensive view of the stock’s current standing within the Trading & Distributors sector.
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